Lotsa, why don't you have a peek at the weighting that the Bureau of Statistics assigns to the various elements of the basket. The official CPI does not accurately reflect the basket that a typical "middle class" family would be concerned about. Education for example. Typically 7% annually, which should be enough to skew the numbers, but it never does because of the small representation in the assumptions and the sample population.
If the true CPI was flat then the reserve bank would have failed in its stated goal to maintain inflation around 3%. Since that has been expressed as national goal, who are we to argue for less than 3%?